Fibra Monterrey announced its intentions to issue debt up to 100 million dollars, a plan that will be discussed over an Ordinary Assembly of Real Estate Trust Securities Certificates (CBFIs by its Spanish initials, Certificados Bursátiles Fiduciarios Inmobiliarios) Holders scheduled for October 12th.
Fibra Monterrey proposal relies on making a public offer and collocating long term fiduciary stock exchange certificate (CEBURES by its Spanish name, certificado bursátil fiduciario) in a first issue up to 100 million dollars distributed in a million of CEBURES in a 7-year period. According to Fibra Monterrey, the books close on October 28th, 2020.
That debt issue will be done under the protection of the multivalued program approved for the fiber in March 2017 – currently under its five years term – that allows Fibra Monterrey to issue and offer both CBFIs and CEBURES for a net worth up to 10,000 million pesos.
This time, the investment trust –popular in the office sector and with a large exposure in industrial real estate – seeks to issue the mentioned amount only in CEBURES, so in case the proposal is approved it will a debt-only issue that doesn’t affect directly CBFIs holders.
Alejandro González, Intercam Banco analyst, explains that the issue of these resources will be used to refinancing debt, solidifying the financial profile as the same times it improves the maturity profile of Fibra Monterrey.
The expert’s opinion gives certainty to the actual holders of Fibra Monterrey not only in that city, but also to those living in other Mexican cities such as Querétaro, Ciudad de México, Toluca, Puebla, Guanajuato, Zapopan, Zacatecas, Durango, Gómez Palacio, Torreón, Saltillo, Chihuahua, Tampico, Tijuana, Mexicali, Hermosillo, Obregón, Los Mochis, Culiacán, Mazatlán and Tepic.
In a similar way, González reminded that the second offer under the multivalued program was for an amount of 3,900 million pesos. Some of those resources are still unused due to the suspension of the buying process of the office building “La Perla” as well as the temporary stop of the acquisition pipeline due to the pandemic, keeping resources available to any uncertainty of the times.
Keywords: Fibra Monterrey, debt issue CEBURES, CBFIs, Fibra MTY, fiber trust, real estate investment trust, Monterrey real estate investment.